CapitalMark Knoxville Operation Established

Chattanooga, TN - November 5, 2007 - CapitalMark Bank & Trust is pleased to announce its plans to establish a full service banking office in Knoxville, and the appointment of Ms. April G. Brown, Ms. Lynne L. Fugate, and Mr. Thomas N. Schmid as Executive Vice Presidents.

The Knoxville operation will be led by Jim Vavalides, one of bank’s founding executives and General Banking Head for all markets. All individuals are graduates of the University of Tennessee and have served in a variety of executive roles in the Knoxville and East Tennessee markets, with a combined 70 years of industry experience. Ms. Brown has extensive experience in the wealth management and mortgage financing areas. Ms. Fugate also served as Executive director of the “Nine Counties One Vision” effort. Mr. Schmid has spent his entire 20 year career in the Knoxville market. Mr. Vavalides grew up in Knoxville and has relocated his family back to the city after spending a number of years in Chattanooga.

The CapitalMark model focuses on owner managed businesses, and the executive and professional segments. In its brief operating history, CapitalMark is already recognized by clients as a unique organization, bringing unmatched urgency, intensity, and strategic thinking to client relationship management. The bank places its clients’ needs at the center of its activities and significantly empowers its client contact personnel to make decisions on the spot without the level of bureaucracy found at many banking institutions.

Regulatory approval to open the Knoxville office has recently been obtained with a formal opening date expected in the next few weeks. For the foreseeable future, the bank’s office will be located at 550 West Main Street. Negotiations for permanent space are underway with sites in the Bearden and downtown areas being considered. The bank has been conducting loan operations since earlier in the year. In addition to full service lending operation, the bank will offer a complete suite of deposit and treasury services, including courier services and remote deposit transmission capabilities.

CapitalMark Bank and Trust began operations in Chattanooga in March of this year after a successful initial capital offering in the amount of $35,000,000. At the time, this was the largest amount ever raised by a newly chartered State bank. The organization recently exceeded $100,000,000 in total assets.